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Terms in this set (293)

- Corporate social responsibility generally entails voluntary actions taken by a company to address the ethical, social and environmental impacts of its business operations and the concerns of its stakeholders
- AMA refers to corporate social responsibility as "the impact of the company's actions and operating in a way that balances short-term profit needs with society's long-term needs, thus ensuring the company's survival in a healthy environment"
- For a company to act in a socially responsible manner, the employees of the company must also maintain high ethical standards and recognize how their individual decisions reflect the actions of the firm as a whole
- Firms with strong ethical climates tend to be more socially responsible
- It is important to distinguish between ethical business practices and corporate social responsibility programs
- Ideally, firms should implement programs that are socially responsible AND its employees should act in an ethically responsible manner
- Being socially responsible generally means going above and beyond the norms of corporate ethical behavior
- Ex: giving to charity
- Consumers and investors increasingly appear to want to pursue products and services from and invest in companies that act in socially responsible ways. They also may be willing to pay more if they can be assured the companies truly are ethical
- Some companies are socially responsible, but not all companies are ethical (and visa versa)
- With such ethical consumers making up more and more of the market, many large companies have recognized that they must be perceived as socially responsible by their stakeholders to earn their business